Once GSTR 1 and GSTR 2 are filed, a dealer needs to enter GSTR 3 and make the GST Payment. In addition, if a refund is required to be claimed, then the related refund can be done by filling out the relevant form.
Type of Payments –
Types of Payment which are made under GST
There are 3 types of Payment
IGST – Paid when the interstate supply is made (paid to center)
CGST – Paid when making supply within the state (paid to center)
SGST – Paid when making supply within the state (paid to state)
In addition to the above payments, a dealer is required for these payments –
Tax deducted at source (TDS) – TDS is a mechanism by which the tax is deducted by the dealer before paying the supplier.
How to calculate the GST payment to be made?
Generally, the input tax credit should be reduced from Outward Tax Liability to calculate the total GST payment to be made.
Also, ITC can’t be claimed on interest and late fees. Both Interest and late fees are required to be paid in cash.
The way the calculation is different, it is different for different types of dealers
Regular Dealer:- A regular dealer is responsible for paying GST on outward supply and can claim input tax credit (ITC) on the purchase made by him. The difference between GST outward tax liability and ITC payable by a regular dealer.
Composition Dealer:-The GST payment for a composition dealer is comparatively simpler. dealer, who has opted for the scheme, has to pay a fixed percentage of GST on the total outward supply.
Who should make the payment?
These dealers are required to make GST payment –
- A registered businessman needs to pay a GST when GST liability is present.
- The registered dealer is required to pay tax under RCM
- E-commerce operator must collect and pay TCS
- Dealers need TDS deduction
When should GST payment be made?
- GST payment is to be made when the GSTR 3 is filed.
- GSTR-3 is filled on 20th of the next month.
What are the electronic ledgers?
These ledgers are made electronically on the GST portal.
GST payment can be made in 2 ways:- –
Payment through Credit Ledger – The credit of ITC can be taken by dealers for GST payment. Credits can be taken only for tax payment, using ITC, interest, penalties and late fees cannot be paid.
Payment through Cash Ledger –GST payment can be made online or offline. The challan has to be generated on GST Portal for both online and offline GST payment.
Where tax liability is more than Rs 10,000, it is mandatory to pay taxes Online.